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Key points
- The gold sector dragged the All Ords Index lower on Monday, sliding 1.85%
- Its constituents were likely impacted by a slight dip in gold prices. Though, the sector's worst performer dropped its full year guidance by as much as 11%
- As of the end of Monday's session, the All Ordinaries Index was 0.68% lower than it was at Friday's close
The All Ordinaries Index (ASX: XAO) struggled on Monday. It was weighed down by one of the market's worst performing sectors, the S&P/ASX All Ordinaries Gold Index (ASX: XGD).
The gold sector faced multiple challenges today, as the price of gold softened overnight while one of its participants reported that its guidance had dropped on the back of a geotechnical incident.
As of Monday's close, the All Ords had tumbled 0.65%. For context, the S&P/ASX 200 Index (ASX: XJO) had also slumped 0.51%.
Let's take a look at what weighed on the index's 'golden children' today.
Why did All Ordinaries gold shares drag on the market today?
The All Ords was weighed down by gold miners on Monday, with the gold sector having slid 1.85% at the session's close.
It followed a softening of the price of gold overnight. As The Motley Fool Australia reported this morning, the metal's price slipped 0.35% to trade at US$1836.10 an ounce prior to the ASX's open.
And, while it has recovered slightly in today's trade – CNBC has the commodity's value at US$1,837.20, a 0.29% improvement – it hasn't been enough to pull its ASX-listed producers out of the red.
The share prices of Resolute Mining Limited (ASX: RSG), DGO Gold Ltd (ASX: DGO), and Pantoro Ltd (ASX: PNR) slipped 11.2%, 5.4%, and 7.2% respectively.
However, the sector's biggest tumble came from the Regis Resources Limited (ASX: RRL) share price.
It fell a whopping 14.29% on Monday after the company downgraded its financial year 2022 guidance.
A wall slip at the company's Rosemont operation and other challenges resulted in the downgrade of its full year production guidance. It now expects to produce between 300,000 ounces and 340,000 ounces of gold at its Duketon operation in financial year 2022 – 40,000 fewer than previously thought.
That saw the company's total expected production fall to between 420,000 ounces and 475,000 ounces.
However, one All Ords gold producer recorded a gain on Monday. The Tietto Minerals Ltd (ASX: TIE) share price surged 6.1% after the company announced it had struck a bonanza gold intercept at its Abujar Gold Project.
